New Jersey Resources (NJR) AI Stock Analysis

• Market Cap: $4.80B
• Dividend Yield: 3.87%
• Average Volume (3M): 605.77K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.07
• Revenue Growth: 13.94%
• EPS Growth: 13.93%
• Country: US
• Employees: 1,372
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.16
• Shares Outstanding: 100,745,880
• 10 Day Avg. Volume: 673,868
• 30 Day Avg. Volume: 605,766
• PEG Ratio: 1.03
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 2.37
• P/FCF Ratio: -20.13
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 4.24
• Enterprise Value/Gross Profit: 19.74
• Enterprise Value/Ebitda: 11.59
• 1Y Price Target: $53.50
• Price Target Upside: 12.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.14
• Revenue Forecast (FY): $2.16B

• Rating: 64 Neutral
• Price Target: $48.00 ▲(0.52% Upside)

The overall stock score reflects strong earnings performance and attractive valuation, offset by bearish technical indicators and challenges in revenue growth and cash flow management. Positive earnings call sentiment and corporate events provide additional support.

Positive Factors

Revenue Growth

Exceeding revenue estimates indicates strong demand and effective business strategies, supporting long-term growth potential.

Capital Investment

Significant capital investment in core segments suggests commitment to growth and infrastructure development, enhancing future earnings.

Dividend Growth

Consistent dividend growth reflects financial stability and management's confidence in long-term profitability, appealing to investors.

Negative Factors

High Leverage

High leverage may limit financial flexibility and increase risk, especially if interest rates rise or cash flows decrease.

Negative Free Cash Flow

Negative free cash flow indicates potential issues with capital expenditure management, impacting long-term financial health.

Regulatory Challenges

Regulatory challenges could affect operations and growth, posing risks to future profitability and strategic initiatives.

New Jersey Resources Business Overview & Revenue Model

Company Description

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates commercial and residential solar projects situated in New Jersey, Connecticut, Rhode Island, and New York. The Energy Services segment offers unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Storage and Transportation segment invests in natural gas transportation and storage facilities. It provides heating, ventilation, and cooling services; holds commercial real estate properties; and offers solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

How the Company Makes Money

New Jersey Resources generates revenue through multiple streams. The primary source is the regulated natural gas distribution segment, where New Jersey Natural Gas earns income by delivering natural gas to customers and charging for the distribution services. This is regulated by the state, allowing the company to earn a return on its investments in infrastructure. Additionally, NJR makes money through its wholesale energy sales, where it buys and sells natural gas and energy commodities in the market. Another significant revenue stream comes from NJR Clean Energy Ventures, which invests in solar projects and earns revenue through power purchase agreements and incentives related to renewable energy production. Partnerships with other energy companies and government incentives for renewable energy also contribute to NJR's earnings, enhancing its overall financial stability and growth potential.

New Jersey Resources Financial Statement Overview

Summary

New Jersey Resources demonstrates strong profitability and efficient equity usage, but faces challenges with revenue growth and high leverage. Cash flow management, particularly in terms of free cash flow, requires attention to ensure long-term financial stability.

Income Statement

New Jersey Resources shows strong profitability with a consistent net profit margin around 16% and an impressive EBIT margin of 27.3%. However, revenue growth has been negative in recent years, indicating potential challenges in expanding market share or pricing power.

Balance Sheet

The company maintains a high debt-to-equity ratio, which could pose risks if interest rates rise or cash flows decrease. However, the return on equity is solid, reflecting efficient use of shareholder funds to generate profits.

Cash Flow

Operating cash flow is positive, but free cash flow has been negative in several years, indicating potential issues with capital expenditure management. The free cash flow to net income ratio is also concerning, suggesting that not all earnings are translating into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.03B	2.03B	1.78B	1.93B	2.91B	2.13B
Gross Profit	436.83M	435.78M	436.70M	299.83M	397.07M	301.05M
EBITDA	743.88M	743.88M	666.35M	594.06M	565.01M	433.52M
Net Income	335.63M	335.63M	289.77M	264.72M	274.92M	117.89M
Balance Sheet
Total Assets	7.58B	7.58B	6.98B	6.54B	6.26B	5.72B
Cash, Cash Equivalents and Short-Term Investments	9.51M	9.51M	14.26M	21.75M	95.37M	77.59M
Total Debt	3.77B	3.77B	3.52B	3.29B	3.13B	2.76B
Total Liabilities	5.19B	5.19B	4.78B	4.55B	4.44B	4.09B
Stockholders Equity	2.39B	2.39B	2.20B	1.99B	1.82B	1.63B
Cash Flow
Free Cash Flow	-239.73M	-239.73M	-143.91M	-61.93M	-274.95M	-233.66M
Operating Cash Flow	466.35M	466.35M	427.41M	478.99M	323.48M	390.95M
Investing Cash Flow	-568.27M	-568.27M	-569.07M	-538.63M	-590.61M	-622.12M
Financing Cash Flow	101.96M	101.96M	141.76M	59.70M	262.54M	117.78M

New Jersey Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJR, the sentiment is Positive. The current price of 47.75 is above the 20-day moving average (MA) of 46.30, above the 50-day MA of 45.69, and above the 200-day MA of 45.79, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 90.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NJR.

New Jersey Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWX	74 Outperform	$5.89B	12.71	5.42%	3.03%	-23.15%	157.45%
UGI	70 Outperform	$8.22B	12.38	14.87%	3.90%	1.10%	140.04%
OGS	70 Outperform	$4.72B	18.33	8.51%	3.40%	15.06%	12.27%
SR	69 Neutral	$4.95B	19.20	8.20%	3.78%	-4.50%	2.49%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CPK	64 Neutral	$3.04B	22.72	9.13%	2.10%	17.15%	15.00%
NJR	64 Neutral	$4.80B	14.30	14.62%	3.87%	13.94%	13.93%

New Jersey Resources Corporate Events

New Jersey Resources Reports Strong Fiscal 2025 Results

New Jersey Resources reported strong financial results for fiscal 2025, with a net income of $335.6 million, marking a significant increase from the previous year. The company achieved the high end of its net financial earnings per share guidance and continued its trend of outperforming initial annual guidance for the fifth consecutive year. Key operational highlights include record investments in energy efficiency and clean energy capacity, as well as strategic regulatory milestones. Looking forward, NJR has introduced a fiscal 2026 guidance range and remains focused on long-term growth and shareholder value.

New Jersey Resources Approves 2026 Incentive Plan

On November 4, 2025, New Jersey Resources‘ Leadership Development and Compensation Committee approved the fiscal year 2026 Officer Annual Incentive Plan for its named executive officers. The plan aims to align executive objectives with corporate results, focusing on net financial earnings, individual leadership, and stakeholder commitments. The plan offers incentive awards based on performance, with potential awards exceeding targets payable in restricted stock units or deferred retention stock units. Additionally, long-term incentive awards were granted, including performance share units and restricted stock units, with vesting conditions tied to company performance over a 36-month period.

New Jersey Resources Announces Board Expansion

On September 10, 2025, New Jersey Resources announced the election of Amy B. Mansue to its Board of Directors, effective November 1, 2025, expanding the board from eleven to twelve members. Mansue, currently the President and CEO of Inspira Health Network, brings extensive experience from both the public and private sectors, which is expected to strengthen NJR’s strategic positioning and contribute to delivering long-term value for shareholders and customers.